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Next govt should reduce interest rate, corporate tax, free up agriculture: Surjit Bhalla

PW Bureau

Dr Bhalla called for a major cut in corporate tax by about 500 basis points across the board reducing the cost of capital which is one of the highest in the world

New Delhi: Economist and author Dr Surjit Bhalla said that the agenda for the new government should include the elimination of government intervention in the agriculture sector, reforming labour laws and lowering the cost of capital through a reduction in interest rate and corporate tax.

‘Free up agriculture’

Speaking at FICCI National Executive Committee Meeting, Dr Bhalla said that the first thing that the new government should do is free up agriculture sector as every developing country in the world has first reformed its agriculture sector.

“We have got too much intervention by the government in agriculture,” he said. While advocating the elimination of MSP and PDS, he recommended expanding the income support system to farmers.

Dr Bhalla further suggested a major cut in corporate tax by about 500 basis points across the board reducing the cost of capital which is one of the highest in the world.

‘Next govt should have a robust reforms agenda’

Sandip Somany, President, FICCI said that the priority of the new government should be to bring back the economy on the high growth trajectory. “The next government will have to plan for a robust reforms agenda that would not only boost consumer sentiment but will also create conditions for higher private sector investments and exports.”

Delivering the vote of thanks, Sangita Reddy, Senior Vice President, FICCI hoped that the new government would take corrective measures to boost the economy.